Lehman Brothers was forced to declare bankruptcy in September 2008, when:
A)Barack Obama was elected president.
B)it purchased Bear Stearns, another investment bank.
C)one of its short-term lenders, JPMorgan Chase, demanded $5 billion in cash as collateral for loans it had made to Lehman.
D)the European Union abandoned the euro.

Question

Quizplus · Accepted Answer

One of Lehman Brothers' short-term lenders, JPMorgan Chase, demanded $5 billion in cash as collateral for loans it had made to Lehman. This caused a liquidity crisis for Lehman, leading to its bankruptcy declaration in September 2008. None of the other answer choices are accurate in explaining the cause of Lehman Brothers' bankruptcy.

Lehman Brothers Was Forced to Declare Bankruptcy in September 2008